Brexit: Theresa May struggles to suppress Tory row ahead of crunch cabinet meeting

Both Brexiteers and pro-EU Tories have made sharp comments as details of Ms May's plans emerge ahead of the get together at Chequers

Prime minister Theresa May has made promises to all sides of her party over Brexit (Getty Images)

Theresa May struggled to contain Tory divisions over Brexit ahead of a crunch meeting due on Friday, at which she wants the cabinet to finally agree her plans for a future relationship with the EU.

The prime minister assured the commons that her cabinet is “strong”, but intense pressure came from the Brexiteer wing of the party, to dismiss any deal which leaves the UK too closely tied to the EU.

At the same time, a business minister warned a “no deal” Brexit would be “disastrous” and attacked those – including frontbenchers Boris Johnson and Jeremy Hunt – who have criticised companies for questioning Ms May’s approach.

The prime minister is meeting other European leaders this week, including Mark Rutte of the Netherlands and Germany’s Angela Merkel.

But the main event will be the Brexit showdown at Ms May’s Chequers country residence, where it is rumoured the cabinet will be asked to support close continued alignment on EU rules for goods and tariffs.

That prospect has enraged Brexiteers like ex cabinet minister Owen Paterson, who argued “the economic benefits of Brexit” will be lost unless the UK leaves the customs union “cleanly and completely”.

Mr Paterson said: “The Conservative manifesto at the last general election – which secured the most votes of any party since 1992 – was unambiguously clear: ‘As we leave the European Union, we will no longer be members of the single market or customs union’.

“For the good of every citizen in the country, that promise must now be delivered.”

He claimed the new customs model due to be considered by cabinet ministers on Friday appeared to be “little more than a rebrand” of the “customs partnership” model, which would see the UK collect duties on behalf of the EU.

The Brexit that this government will be delivering, and is working to deliver, is a Brexit that ensures that we are out of the customs union, we are out of the single market, we are out of the jurisdiction of the European Court of Justice

Theresa May

Details leaked to The Spectator suggest the plans would see all finished, imported goods charged a UK tariff, set independently of EU rates.

That would mean Britain could strike trade deals with other countries that would cut the tariffs on their manufactured goods in exchange for allowing UK services into their markets.

But Britain would still promise not to deviate from EU standards, so we could not change regulations as part of any trade deal.

To minimise friction at ports and to help with the Irish border issue, goods would be tracked once they entered the UK. They would be charged the EU tariff rate if sent on to the continent.

Jacob Rees-Mogg, chairman of the Brexit-backing European Research Group of Tory MPs, said he would rebel if Ms May makes any proposal he believes keeps the UK closely aligned to the EU.

“It’s hard to think of a worse idea,” he added.

Adopting EU tariffs would be “abandoning the benefit of Brexit” and “a really foolish policy” because it would curtail the UK’s ability to strike its own trade deals.

But from the other side of the party, business minister Richard Harrington told Bloomberg a “no deal Brexit”, “would be completely disastrous for business in this country”.

Ms May has consistently said “no deal would be better than a bad deal”, whilst also saying she believes the UK can secure a good deal.

But the mixed rhetoric has prompted firms that rely on the EU’s open borders to move goods and people to criticise the government’s approach, which in turn has led to a backlash from the likes of Mr Hunt and Mr Johnson, who is reported to have said “f**k business”, when asked about their criticism.

But Mr Harrington said politicians who criticise firms for going public with their worries “don’t really understand how business works.”

He added: “I perfectly understand why Airbus and other companies who have so much invested in this country, and employ so many people – are responsible for hundreds of millions if not billions of pounds of exports – of course they’re worried.

“They’ve got every right to say that.”

Speaking in the commons, Ms May said: “The Brexit that this government will be delivering and is working to deliver, is a Brexit that ensures that we are out of the customs union, we are out of the single market, we are out of the jurisdiction of the European Court of Justice.

“[It will ensure] we bring an end to free movement, we take control of our borders, we have an independent trade policy and that we are also able to have a good trade arrangement with the European Union, protecting jobs and prosperity [in] the future.”

The Prime Minister met Mr Rutte in The Hague earlier this week and is set to meet Ms Merkel in Berlin tomorrow, with insiders suggesting she is urging them not to reject her new proposals out of hand when they are finally published.